Is Case up for sale?

[Chipperman]

Friends
Recently two separate unrelated people told me that some time next year Fiat plans to spin off Case. A few folks have also told me that some or all of the Case compacts are being discontinued in the foreseeable future. Has any one else heard this or are these just unfounded rumors?

Not trying to stir anything just wondering what is happening.

Happy Tractoring
Chipperman

 

[Birdhunter1]

I read on here not long ago that CNH was planning to discontinue the compact line on the Case DX series because of poor sales on the Case compacts but continue the identical NH compacts that are selling well.

 

[JoeinTX]

CNH is planning to differentiate the two lines more in the future so that could be why you're hearing of more seperation in the two. The CNH line-up is primarily New Holland on the low-hp end and NH does more business in small tractors than CIH, but, what reason is there to stop offering essentially repainted small tractors at CaseIH dealers? If the only CNH dealer around is a CIH one they need a CUT offering, do they not?

No need to worry. CaseIH dealers will continue to offer "red" versions of the NH line through their dealers because the market is there.

 

[Chipperman]

CNH is planning to differentiate the two lines more in the future so that could be why you're hearing of more seperation in the two. The CNH line-up is primarily New Holland on the low-hp end and NH does more business in small tractors than CIH, but, what reason is there to stop offering essentially repainted small tractors at CaseIH dealers? If the only CNH dealer around is a CIH one they need a CUT offering, do they not?

No need to worry. CaseIH dealers will continue to offer "red" versions of the NH line through their dealers because the market is there.

JoeinTX
I am not worried at all. I was just wondering if anyone else had heard similar information. I like others in the tractor industry like to keep up on what is happening and if at all possible separate fact from fiction. Thanks for you thoughts and input.
Happy Holidays and Happy Tractoring
Chipperman

 

[floridahay]

Just a while ago on another forum I was reading rumors that Agco is in the process of buying CNH, who knows about these things? I have heard that other rumors that New Holland may be dropped and Case would continue. I know that New Holland seems to have lost market share over the last few years in my area and their dealer network leaves a lot to be desired in this area too.

 

[BTI]

CNH only wants to have Big Dealers.
They aren't real fond of Mom & Pop dealerships.
If you don't have proper coverage in areas you won't sell units there,
but not all areas will handle having a Big Dealership.
Ohio has lost more than one NH dealer in the last year.
I hate to see it go this way.

BTI

 

[CMunger]

The New Holland brand does well world wide, and the Case/IH does well in the US. SO, if you were Fiat, and wanted to spin one off, which one do you think it would be?

Chuck

 

[daTeacha]

I'd be real tempted to name the whole thing CNH and offer the same machinery in all dealerships in the customer's choice of red or blue. Car manufacturers seem able to sell different colors, why not tractors?

 

[CMunger]

Not as many tractors are sold as cars, that why it does not work. Agco and CNH have been using this theory for the tractor industry, and it has not worked. They are creating competition for themselves, and the dealers cannot compete and make money competing with like products in the same area. There could be 4 to 5 dealers competing in the same area where there should only be 3. The customer would actually still get good pricing, and better service with a more stable dealership.

Chuck

 

[dgl24087]

Where I live in SW Virginia, within a 50-60 radius, I have 8 JD, 5 NH, 2 Case, 4 Kubota, 2 Massey Ferguson, 1 Kioti, and 1 Farmtrac, and these are just the dealers I can think of off the top of my head. In the last 5-7 years, 2 Case dealers bit the dust, while all of the rest have remained fairly strong. In the field, JD easily outnumbers the rest combined by 10-1, maybe more.

 

[BTDT]

Where I live in SW Virginia, within a 50-60 radius, I have 8 JD, 5 NH, 2 Case, 4 Kubota, 2 Massey Ferguson, 1 Kioti, and 1 Farmtrac, and these are just the dealers I can think of off the top of my head. In the last 5-7 years, 2 Case dealers bit the dust, while all of the rest have remained fairly strong. In the field, JD easily outnumbers the rest combined by 10-1, maybe more.

Yeah, lot's of old junk JD's in the fields near our place too. Just kidding.

 

[MessickFarmEqu]

Just a while ago on another forum I was reading rumors that Agco is in the process of buying CNH, who knows about these things? I have heard that other rumors that New Holland may be dropped and Case would continue. I know that New Holland seems to have lost market share over the last few years in my area and their dealer network leaves a lot to be desired in this area too.

CNH is a larger company than AGCO is, I can't see how they could financialy arrange a buyout. Now the CEO of CNH recently left to go work for AGCO. Maybe thats where that came from.

 

[Bob_Skurka]

Has anyone looked at the stock price for CNH or the overall financials for this company? I see no logic for the rumor based on their performance.

Look at their chart, over a 2 year span, their stock is up nearly 50% (BLUE LINE ON CHART). Deere is up about 32% during the same period (RED LINE ON CHART) and the 3 major market indexes during that same time (Dow, Nasdaq, S&P) are each up only about 15%. (Green, Yellow, Brown lines)

I don't see CNH on many "buy" lists, but they are not on many "sell" lists either. Seems to me there is little basis for a rumor like this? Thoughts? From other financal information I can see the company seems to be reasonably sound, it is not setting the world on fire, but it is doing OK. Its worldwide scope is allowing it to compete in developing nations where construction equipement sales are growing.

 

[Chipperman]

Has anyone looked at the stock price for CNH or the overall financials for this company? I see no logic for the rumor based on their performance.

Look at their chart, over a 2 year span, their stock is up nearly 50% (BLUE LINE ON CHART). Deere is up about 32% during the same period (RED LINE ON CHART) and the 3 major market indexes during that same time (Dow, Nasdaq, S&P) are each up only about 15%. (Green, Yellow, Brown lines)

I don't see CNH on many "buy" lists, but they are not on many "sell" lists either. Seems to me there is little basis for a rumor like this? Thoughts? From other financal information I can see the company seems to be reasonably sound, it is not setting the world on fire, but it is doing OK. Its worldwide scope is allowing it to compete in developing nations where construction equipement sales are growing.

Bob you make a very good point.

I do not remember where the stock was or the companies condition when Fiat purchased them. What I do remember is the old adage "Buy low sell high" or sometimes it is best to concentrate on your core business. Neither one of those may pertasin here. I am not advicating the rumor is founded or not but since I have been in the tractor/equipment industry, it seems like as soon as I think I have heard it all something new surprizes me.

Neil, In regard to size of each company I could be wrong but I thought Kmart having just emerged from bankruptcy, was a much smaller company the Sears and I thought it was Kmart that purchased Sears. If so Stranger
things could happen.
Time will tell.

Happy Holidays and Happy tractoring.
Chipperman

 

[jwnge]

CNH is a larger company than AGCO is, I can't see how they could financialy arrange a buyout. Now the CEO of CNH recently left to go work for AGCO. Maybe thats where that came from.

When Case bought IH, Case was a much smaller company.

 

[dgl24087]

CNH is a larger company than AGCO is, I can't see how they could financialy arrange a buyout. Now the CEO of CNH recently left to go work for AGCO. Maybe thats where that came from.

There's also a press release on the Case site detailing a reorginization of North American ops, several AGCO people are now with Case. Maybe CNH and AGCO will merge, who knows, stranger things have happened. Most of these mergers over the past few years seem to me to be for the sole purpose of acquiring a brand name, and that name is then diluted by producing product that competes against itself, just under different colors.

 

[dgl24087]

Where I live in SW Virginia, within a 50-60 radius, I have 8 JD, 5 NH, 2 Case, 4 Kubota, 2 Massey Ferguson, 1 Kioti, and 1 Farmtrac, and these are just the dealers I can think of off the top of my head. In the last 5-7 years, 2 Case dealers bit the dust, while all of the rest have remained fairly strong. In the field, JD easily outnumbers the rest combined by 10-1, maybe more.

I need to amend this, I forgot a dealer who sells Montana, Landini, and Massey Ferguson, plus one more JD.

 

[MessickFarmEqu]

I would not be too surprised to see Case change in some way. Internaly New Holland does not seem to really know what to do with them. They are still rather seperate companies, and when it comes to getting $$ for programs and stuff New Holland often gives Case the short end of the stick.